Consider grabbing 'Dogs of the Dow' by their tails

The Ticker

Following yesterday's Federal Reserve decision not to raise short-term interest rates, many people may wonder: Where should I put my money now -- stocks, bonds, CDs, money market funds? Several ideas:

NOVEL STRATEGY: "Ever hear of 'Dogs of the Dow'? You buy the 10 highest-yielding Dow Jones industrial stocks," says James O'Shaughnessy, author of "What Works on Wall Street."

He adds, "If you followed this strategy over the past 10 years, you beat the performance of 99 percent of mutual funds. You adjust your portfolio once a year."

As of Monday the "Dogs of the Dow" were AT&T, Chevron, General Motors, Merck, Minnesota Mining, Exxon, DuPont, J. P. Morgan, Philip Morris and Texaco.

DIFFERENT TWIST: "Investors in 401(k)s who reached the $9,500 maximum -- and who want to keep saving for retirement -- often wonder where to invest next. Reduce your debt. Before investing more toward retirement, use the extra cash to wipe out or reduce credit card debt. Nothing else pays a guaranteed 18 percent -- the average credit card rate." (Margaret Welch, financial planner.)

STARTING SMALL: "Here's a strategy where even a small investor with $1,000 can build a quality stock list," says Charles Carlson, editor of the DRIP (Dividend Reinvestment Plan) Investor.

He adds, "Countless studies show the two biggest roads to success are starting early and making regular investments. Yet many people never get in the game, saying, 'The market's too high,' etc.

"But DRIP investing -- dollar-cost averaging by investing each month, regardless of the market level -- makes figuring if the market is too high irrelevant."

VETERANS' VIEWS: Advice from successful investors:

"Become more humble as the market goes your way." (Bernard Baruch.)

"The usual bull market weathers many tests until it is considered invulnerable, whereupon it is ripe for a bust." (George Soros.)